Steel Market Soaring steel prices: Challenging times for suppliers
Austria — The current crisis in Ukraine is having a drastic effect on the steel market. The acute shortage of raw materials has caused great uncertainty and an extreme rise in prices. In times like these it is especially important to have a large warehouse and high degree of in-house production to fall back on, Meusburger points out.
The current war in Ukraine has led to a noticeable shortage of steel in Europe. This has led to extreme price hikes in both steel prices and energy and transport prices, as well as increased demand for well-known steelworks. To buffer market fluctuations, Meusburger has long been relying on high stock levels and in-house production. The company also announced that it would not purchase any goods from Russia or Ukraine.
However, in order to continue to guarantee this service, the standard parts manufacturer also can’t avoid buying steel and must accept the increased costs. Guntram Meusburger emphasises: “We are going through turbulent times, the likes of which I have not experienced in almost 25 years at Meusburger. Due to the unforeseen situation on the market, many steel producers are now invoking force majeure and withdrawing from their contracts. Despite the steel shortage we are doing our best to ensure product availability for our customers”.
At Meusburger 100 percent of the plates are produced in-house and standard plates can be sent directly from stock. Various raw materials are additionally available for further processing in the company’s outdoor storage area of around 24,000 m2. Currently, despite the difficult situation, the supplier is able to guarantee continuous availability.
To guarantee the highest quality of its components, the manufacturer uses heat treatment, thus ensuring stress relief in the material. This process uses a lot of energy in the form of gas, but creates the optimal conditions for low-deformation processing of the parts, Meusburger states.